The correct option is B Lichen
A lichen is an organism that results from a mutualistic relationship between a fungus and a photosynthetic organism. The other organism is usually a cyanobacterium or green alga. They are sensitive to sulphur dioxide because their efficient absorption systems result in rapid accumulation of sulphur when exposed to high levels of sulphur dioxide pollution.
The algal partner seems to be most affected by the sulphur dioxide; chlorophyll is destroyed and photosynthesis is inhibited.
So SO2 from industries and vehicular exhaust, hinders the growth of lichen. Hence the absence of lichen is an indication of pollution.